All Forum Posts by: Peter Mckernan

Hello @Cosmo Lee

Welcome to the site! This site will give you a wealth of knowledge on investing and real estate investing strategies that will increase your net worth as you mentioned in your post. BP has a great community and the community is always willing to help with any questions you have. Everyone hear thrives on helping others out.

I'm located in Orange County as well and get a wealth of knowledge from this site. Good luck and hopefully you can build that net worth through real estate investing including your mutual fund investments.

@Logan Jones

That goal is great to have and it can be done. What needs to be done from you to accomplish that goal is to create capital, create creative financing, and create a few great relationships that would turn into partnerships. These three pillars would set your goals up to be accomplished.

To create more capital, work a side job (i.e. real estate agent, property manager for a friend, working within construction to get house construction knowledge). All these things can be worked on during your nights off, or on weekends off. 

To create creative financing you could take to the seller of some properties and work with them to give seller financing. Another way you could work on creative financing is to see what the balance is on the house you own (just a word to the wise, make sure you don't over leverage yourself on your personal residence). If you have a self-directed IRA you could speak to someone about utilizing that for your progression of your goal.

Now you will want to find a partner, or partners that share your same goals and have knowledge within real estate that can help you accomplish your goals, while you help them accomplish their goals. These partners could be found  at your local meet ups, local real estate conventions, or maybe you could go down to the rotary club in your town and find some people that are involved with real estate in your backyard.

Good luck! 

@Adam Pierce

I'm glad I was able to bring that one to your attention! Happy listening! 

Welcome @Nick Tiscareno

It sounds like you have narrowed down a search to figure out what you really want to do within real estate. That is always the hardest part once you get into the real estate investing world. Wholesaling is a good way to make money, bring in capital for the other deals you would want to get into down the road, and it helps with communication with great people that have been in the business for a long time and crush it.

I have not gotten into the realm of Wholesaling, but I hear it can be quite challenging, which is what you are looking for and with an ambitious mind you will be able to conquer the area of investing. You just need to keep the persistence. One guy that has been crushing it for a long time in Wholesaling that lives in Riverside is Aaron Mazzrillo. He has a great podcast, which was Podcast 37.

Good luck! 

I have a contractor in Redlands I use; however, he isn't as reliable as he started out and needs to manage his time and people better.

It's a recurring tread with trying to get contractors to the rehab, project site, or any location. If you find a good one, keep them and make sure you compensate them well to show your appreciation. You will just need to make sure you are managing them because they may not be giving your project the attention you like and you agreed upon with the contractor.

@Ann Marie Cox

Hey @Mark Totzke

I currently use Buildium.com and quickbooks. Both are great for filling 1099s. The CPA I use prefers Quickbooks for business accounting, so I typically keep two sets of books; one set is on Quickbooks and Buildium.com. 

There are many other programs that help with Tax filling, what it comes down to is your comfort level and preference. I have linked the thread below for a little more information on the topic! Good luck! 

https://www.biggerpockets.com/forums/81/topics/280...

Full-time Firefighter

Hey @David Fitch

Any other insight on the numbers for this property you bought to get a better idea on the cash on cash, ROI, and cap rate?

@Pete PerezI wish I had that answer! To be honest, your best bet in my opinion is to save a sizable downpayment, and once the market turns you'll be siting in a good place to pounce. You can do some market research on the IE and see how the last two market turndowns went, and see around what time the markets hit rockbottom and then turned back into a great sellers market like it is now. As you know, the market is cyclical and the big downturns happen around every ten years.

That being said, you should always research the market you are headed into. If you look out of state do some research, get into contact with some people out there to partner with, and fly out to that area a few times until you fill comfortable about getting into that market.

@Hakim Sofan

Welcome to the site! There is a Meetup in your city the third Wednesday of every month at Round Table Pizza located at 22722 Lambert St. in Lake Forest. You should try to attend, it is a great place to meet people and network with likeminded people.

As for your strategy, it really depends on the amount of cash, the areas you want to invest in, and the type of investing you want to do. The current buy and hold model is tough since there are a lot of houses that do not meet that criteria. The rehab and flip model is a good way to make money within real estate; however, in the market we are in it would be easier to go with a hard money loan, private investor, or all cash from your own investments to capture the property quickly. In regards to the amount of cash, it depends on the area you are looking to perform these strategies. The price point in Orange County is much higher than San Bernardino County and Riverside County. That is some that you would have to research and look to see what you can afford.

Good Luck!